Cap Metro board approves contract with new third-party bus service provider

The Capital Metropolitan Transportation Authority Board of Directors voted Monday to approve a resolution authorizing a contract with a new third-party bus operator, despite concerns from union leadership.

A motion to approve the item passed the board unanimously. President & CEO Dottie Watkins can now finalize and execute a contract with Keolis Transit Services, LLC for contracted bus operations and maintenance services for a base period of three years.

The contract also includes two one-year options, with a 5 percent contingency, for a total amount not to exceed $753,651,081.

According to procurement manager Muhammad Abdullah, the agency’s request for proposal process netted three proposals. The proposals were from Keolis, MTM Inc., and MV Transportation Inc. MV is Capital Metro’s incumbent fixed-route service provider, and MTM currently operates Metro Access.

Evaluation factors included management competence and staffing plan; quality of service delivery, safety and performance monitoring; capability, experience and past performance of the firm; and quality of mobilization plan.

Keolis received the best score, an “acceptable,” which means the firm’s proposal met evaluation standards and has a good probability of satisfying the requirements in the scope of service. An acceptable score also indicates any weaknesses in the proposal can be readily corrected.

The other two proposals were evaluated as “marginal,” which means the proposals failed to meet evaluation standards and have low probability of satisfying the requirements in scope of services. The rating indicates the proposals include significant deficiencies.

The MTM proposal was priced at $772,584,660, and MV’s bid was $728,142,712. Keolis came in at the lowest price tag of $717,762,934.

The meeting’s backup materials note that under the contract, the operation of all Capital Metro’s bus services will be provided by a single service provider. “Capital Metro’s stated goal in this procurement was to identify a partner that will be aggressively focused on ensuring the best possible experience for our customers through data-driven continuous improvement processes,” the backup reads.

Additionally, Keolis will provide maintenance services for all Capital Metro buses and support vehicles. The company is also responsible for building and equipment maintenance at North Ops, East Fifth Ops and the Capital Metro Administrative Annex located at 624 N. Pleasant Valley Road.

The formal procurement process began in September 2022 with development of the required scope of services. In March, Capital Metro completed an expression of interest process, during which the interested firms provided feedback on the draft scope of services document.

The process also included site visits at each firm, meetings between each firm and Capital Metro staff, and oral interviews. Final proposals were submitted in August, and a final technical evaluation was completed.

“The recommended firm was selected based on a combination of technical and price combined and has been determined to provide the best value for CapMetro,” the agenda backup reads.

Capital Metro has struggled in recent years with efforts to recruit and train more bus operators. Last year, Chief Operating Officer Andrew Skabowski told the Austin Monitor that the main drivers of the problem are morale issues, challenging driving schedules and salaries.

The Austin Monitor’s work is made possible by donations from the community. Though our reporting covers donors from time to time, we are careful to keep business and editorial efforts separate while maintaining transparency. A complete list of donors is available here, and our code of ethics is explained here.